42 lines
1.1 KiB
Markdown
42 lines
1.1 KiB
Markdown
# The Purpose of Estimating
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## The Purpose of Construction Cost Estimation
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The purpose of [[construction-estimating]] in practice
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is not to determine the cost of the scope,
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which would take far longer than allotted for bid,
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## For the Solicitor
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* Determine feasibility of functional requirements
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### Type 2 Owners
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For some owners, money is no object,
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and standardization is far more important
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than any potential construction savings.
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These owners can be expected to decline every [[value-engineering]] option offered
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(see [[gold-plating]]).
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## For the Contractor
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* Make profit to meet growth target
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* Secure work for current and projected employees (fill backlog)
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### The Role of the Estimator
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The role of the estimator is to model the potential cost distribution of the project,
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taking actions to reduce the model's uncertainty.
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The progress of the estimator can be measured by $\frac{d\sigma}{dt}$
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### The Role of the Executive
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The role of the executive is to allocate profit and contingency
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according to the potential cost distribution
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weighted by the organizational desire to win the project.
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$$
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{E}[P]=
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$$
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